Kimpton® Hotels & RestaurantsFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Kimpton® Hotels & Restaurants franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $100K
- 3rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 59
- 28th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 61 to 59 over 3 years. Investigate why operators are leaving.
65 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $100K including a $100K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Average Occupancy Rate, Average Daily Room Rate (ADR), and Average RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict D (Below Average) with a risk score of 77/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- IHG FRANCHISING, LLC
- Parent company
- Six Continents Hotels, Inc.
- Ultimate parent
- InterContinental Hotels Group PLC
- Predecessor
- Kimpton
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $68K
- vs $168K prior year
Affiliated brands
- of Holiday Hospitality Franchising
- Six Continents Limited
- IHG Hotels Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Kimpton franchisees operate upscale boutique hotels and associated restaurants/bars, typically 100-300 rooms, managing daily operations including housekeeping, front desk, food & beverage service, and maintenance while paying 6% royalties on room revenue plus 1% on F&B sales under the Kimpton brand standards and systems.
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1981
- FDD year
- 2024
- States available
- 24
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $100K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Near category avg vs category
- Franchise fee
- $100K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Rooms Revenue and Gross Food and Beverage Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 26.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $17 |
| Transfer fee | $25K |
| Inventory (initial) | $1.9M – $2.6M |
| Total fee load | 26.1% of rev |
Financial Performance
This brand's FDD disclosed "Average Occupancy Rate, Average Daily Room Rate (ADR), and Average RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Kimpton® Hotels & Restaurants Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +60.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 1
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 9.8%
- Owners selling to other franchisees
- Termination rate
- 3.3%
- Franchisor-initiated terminations
- Ceased ops
- 1.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Kimpton presents elevated risk due to undisclosed financial performance, extensive litigation, unprotected territories, and aggressive expansion that outpaces due diligence transparency.
Litigation (Item 3)
0 case reference(s): 2 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 77 / 100 rating
- 01HIGHSignificant litigation portfolio including data security breaches, licensee disputes, non-payment actions, and territorial conflicts suggesting operational and legal risk
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation and creates opacity around actual franchisee profitability
- 03MINORUnprotected territory creates direct competition risk from other Kimpton franchisees and company-owned locations without contractual safeguards
- 04MINOR60% YoY unit growth rate is extremely aggressive and may indicate unsustainable expansion or cannibalization concerns rather than organic strength
- 05MINORHigh royalty burden of 6% GRR + 1% F&B (7% blended average) compounds profitability pressure in hospitality's thin-margin environment
- 06HIGHGoing concern status is FALSE but absence of positive disclosure suggests financial stability may not be independently verified
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Specific site |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 10 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 65 |
View Item 3 litigation summary
0 case reference(s): 2 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Oracle Opera or Opera Xpress
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle Opera or Opera Xpress
Item 20 · call current owners
Franchisee Contacts
65 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Kimpton® Hotels & Restaurants · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do Kimpton® Hotels & Restaurants franchise owners earn?
Kimpton® Hotels & Restaurants does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Kimpton® Hotels & Restaurants's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Kimpton® Hotels & Restaurants (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Kimpton® Hotels & Restaurants franchise locations are there?
As of their most recent FDD filing, Kimpton® Hotels & Restaurants has 59 total units in the United States, including 61 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Kimpton® Hotels & Restaurants a good franchise to buy?
FranchiseVerdict rates Kimpton® Hotels & Restaurants as a D-grade franchise with a risk score of 77 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.